BP Q3 2026 Oil production & operations underlying RC profit before interest and tax $3.534 billion, Beat Guidance by +$1.36B
BP beat prior Q3 2026 Oil production & operations underlying RC profit before interest and tax guidance by +$1.36B. FY 2026 reported upstream production was raised by +30.0 to 2,210-2,250 mboe/d (midpoint 2,230 mboe/d). BP reported Q3 2026 underlying RC profit of $8.458 billion, significantly above $2.210 billion in Q3 2025, driven by higher realized refining margins and stronger gas and marketing trading results. For FY 2026, BP lowered its underlying effective tax rate (ETR) guidance to 31%-34% from the prior...
Guidance comparison
Guidance updates
Forward guidance
Key takeaways
Q3 2026 underlying RC profit of $8.458 billion, up 283% year-over-year from $2.210 billion in Q3 2025
Q3 2026 operating cash flow of $14.829 billion, nearly doubled from $7.786 billion in Q3 2025
Q3 2026 reported upstream production of 2,220 mboe/d, down 6.0% from 2,362 mboe/d in Q3 2025
BP lowered FY 2026 underlying ETR guidance to 31%-34% from 35%-40%, reflecting changes in geographical profit mix
FY 2026 reported upstream production guidance adjusted to 2,210-2,250 mboe/d, including impact from Middle East disruption and Culzean divestment
Capital expenditure for Q3 2026 was $3.036 billion; FY 2026 capex guidance maintained at $13.5-14.0 billion
Net debt reduced to $13.870 billion at September 30, 2026 from $22.182 billion at December 31, 2025
Key metrics
Disclosure changes
- Impairment charges
Q3 2026 impairments of $4.1 billion pre-tax, primarily related to transition businesses including Lightsource bp and offshore wind. The group revised Brent oil price assumption to $87/bbl (from $70/bbl) and Henry Hub gas to $3.18/mmBtu (from $3.80/mmBtu) in real 2024 terms for full year 2026.
Large impairment charges in transition businesses indicate writedowns in low carbon energy assets amid changed commodity price assumptions - Segment reporting changes
Reportable segments for external financial reporting will remain Oil production & operations, Gas & low carbon energy and Customers & products until December 31, 2026, as the financial reporting aspects of the new segment model announced on June 9, 2026 will take time to implement.
New segment model will take effect from January 1, 2027, providing investors with updated business unit performance metrics - Legal proceedings - Louisiana settlement
BP reached agreement to settle all remaining governmental land loss claims brought by coastal Louisiana parishes and the State of Louisiana. Terms are confidential but not expected to have a significant effect on financial position or profitability. Additionally, a $350 million settlement with the US state of Louisiana was announced, with timing to be determined.
Additional settlement related to Gulf of America oil spill adds to known liabilities; company states impact is not material - Castrol divestment
The Castrol divestment to Stonepeak (65% share, bp retaining 35%) is expected to complete imminently. Proceeds estimated at $6 billion net of cash disposed. Assets classified as held for sale total $7.673 billion including $2.707 billion goodwill.
Major divestment expected to close shortly, generating significant cash proceeds and reducing bp's interest in Castrol to 35% - Net debt reduction
Net debt decreased to $13.870 billion at September 30, 2026 from $22.182 billion at December 31, 2025. Gearing reduced to 14.8% from 23.1%.
Significant reduction in leverage provides flexibility for capital allocation and reduces financial risk - Hybrid bonds redemption
In Q3 2026, BP redeemed perpetual subordinated hybrid securities of $1.0 billion. In nine months 2026, BP redeemed €2.5 billion of hybrid bonds total.
Continued reduction of hybrid capital; redemption of $1 billion in Q3 and €2.5 billion YTD reduces hybrid bond burden
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